Willis Corporation has beginning inventory $81,000; Purchases $540,000; Freight-in $16,200;...
Question:
Willis Corporation has beginning inventory $81,000; Purchases $540,000; Freight-in $16,200; Purchase Returns $5,800; Purchase Discounts $5,000; and ending inventory $70,200.
Compute the cost of goods sold.
Cost of goods sold:
A line item of the financial statement used for calculation of gross profit by adjusting it against the revenue is known as cost of goods sold. It is reported in the financial statement known as the income statement that depicts the profitability of the business entity.
Answer and Explanation: 1
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View this answer| Particular | Amount |
| Beginning inventory | $81,000 |
| Add: Purchases | $540,000 |
| Less: purchase return | ($5,800) |
| Add: Freight-in | $16,200 |
| Les: Purchase... |
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Cost of Goods Sold on an Income Statement: Definition & Formula
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